Description: In this article, the author gives an overview a number of Enterprise Risk Management ERM issues that arise when one considers the impact of income tax on a fair value accounting system.

Description: Risk management techniques such as stress testing and setting capital targets are fairly well established for life insurers; however, the implementation of these techniques can vary considerably. A fundamental question is how to manage multiple valuation perspectives, and the list of possibilities keeps growing. Companies can potentially consider some or all of the following: U.S. reporting measures (Stat, GAAP), internal measures (EV, VNB, economic capital), international reporting measures (IFRS), rating agency models or other developing standards (ICS, NAIC group capital). This session will begin with a quick overview of the defining characteristics of different valuation frameworks. We will then provide more focused and practical considerations for managing risk and capital under different frameworks, using specific examples to highlight key trade offs.